A diversified financial services company Heartland Financial USA has inked a definitive agreement to acquire Phoenix-based commercial bank, Heritage Bank, National Association, in an all-cash transaction of $16m.
According to the terms of the deal, the purchase price represents a premium of nearly 1.24 times total equity and total deposits of 3.54%.
Pending regulatory approval and customary closing conditions, the deal is expected is complete on or before 14 December 2012.
Until the completion of merger with Heartland’s Arizona Bank & Trust subsidiary, which is expected during the first quarter of 2013, the acquirer will manage Heritage Bank as a separate charter.
Heartland president and CEO Lynn Fuller said the two branch offices of the acquired bank are ideal fit for Arizona Bank & Trust locations in Tempe and on Camelback Road in Phoenix.
As of 30 June 2012, Heritage had nearly $107m in assets, loans of $72m and deposits of $84m and operates as a subsidiary of Ameri-National of Overland Park, Kansas, US.
Stifel Nicolaus Weisel and Hovde Group Financial served as financial advisors to Heartland and Heritage Bank respectively.